Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.95 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 7,000 | hundred square feet |
| Travel to jobs | Miles driven | 202,500 | miles |
| Job support | Number of jobs | 1,800 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $347,000 which includes the following costs:
| Wages | $ | 143,000 |
| Cleaning supplies | 21,000 | |
| Cleaning equipment depreciation | 12,000 | |
| Vehicle expenses | 29,000 | |
| Office expenses | 57,000 | |
| President’s compensation | 85,000 | |
| Total cost | $ | 347,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 77 | % | 13 | % | 0 | % | 10 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 72 | % | 0 | % | 0 | % | 28 | % | 100 | % |
| Vehicle expenses | 0 | % | 77 | % | 0 | % | 23 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 56 | % | 44 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 32 | % | 68 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch—a 51-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $45.90 (200 square feet @ $22.95 per hundred square feet). Calculate the customer margin earned on this job.
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.75 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 12,000 | hundred square feet |
| Travel to jobs | Miles driven | 193,000 | miles |
| Job support | Number of jobs | 2,100 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $349,000 which includes the following costs:
| Wages | $ | 140,000 |
| Cleaning supplies | 32,000 | |
| Cleaning equipment depreciation | 9,000 | |
| Vehicle expenses | 32,000 | |
| Office expenses | 65,000 | |
| President’s compensation | 71,000 | |
| Total cost | $ | 349,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 80 | % | 13 | % | 0 | % | 7 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 66 | % | 0 | % | 0 | % | 34 | % | 100 | % |
| Vehicle expenses | 0 | % | 83 | % | 0 | % | 17 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 59 | % | 41 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 26 | % | 74 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $142.50 (600 square feet @ $23.75 per hundred square feet). Calculate the customer margin earned on this job.
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.50 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 11,500 | hundred square feet |
| Travel to jobs | Miles driven | 67,000 | miles |
| Job support | Number of jobs | 1,900 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $366,000 which includes the following costs:
| Wages | $ | 142,000 |
| Cleaning supplies | 28,000 | |
| Cleaning equipment depreciation | 16,000 | |
| Vehicle expenses | 39,000 | |
| Office expenses | 63,000 | |
| President’s compensation | 78,000 | |
| Total cost | $ | 366,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 79 | % | 12 | % | 0 | % | 9 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 75 | % | 0 | % | 0 | % | 25 | % | 100 | % |
| Vehicle expenses | 0 | % | 84 | % | 0 | % | 16 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 60 | % | 40 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 26 | % | 74 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 52-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $135.00 (600 square feet @ $22.50 per hundred square feet). Calculate the customer margin earned on this job.
In: Accounting
Hello. Please answer all my all questions.
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.95 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
|
Activity Cost Pool |
Activity Measure |
Activity for the Year |
|
|
Cleaning carpets |
Square feet cleaned (00s) |
9,000 |
hundred square feet |
|
Travel to jobs |
Miles driven |
110,500 |
miles |
|
Job support |
Number of jobs |
2,100 |
jobs |
|
Other (organization-sustaining costs and idle capacity costs) |
None |
Not applicable |
|
The total cost of operating the company for the year is $351,000 which includes the following costs:
|
Wages |
$ |
145,000 |
|
Cleaning supplies |
26,000 |
|
|
Cleaning equipment depreciation |
11,000 |
|
|
Vehicle expenses |
33,000 |
|
|
Office expenses |
65,000 |
|
|
President’s compensation |
71,000 |
|
|
Total cost |
$ |
351,000 |
Resource consumption is distributed across the activities as follows:
|
Distribution of Resource Consumption Across Activities |
||||||||||
|
Cleaning Carpets |
Travel to Jobs |
Job Support |
Other |
Total |
||||||
|
Wages |
70 |
% |
15 |
% |
0 |
% |
15 |
% |
100 |
% |
|
Cleaning supplies |
100 |
% |
0 |
% |
0 |
% |
0 |
% |
100 |
% |
|
Cleaning equipment depreciation |
73 |
% |
0 |
% |
0 |
% |
27 |
% |
100 |
% |
|
Vehicle expenses |
0 |
% |
81 |
% |
0 |
% |
19 |
% |
100 |
% |
|
Office expenses |
0 |
% |
0 |
% |
60 |
% |
40 |
% |
100 |
% |
|
President’s compensation |
0 |
% |
0 |
% |
34 |
% |
66 |
% |
100 |
% |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.70 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 14,500 | hundred square feet |
| Travel to jobs | Miles driven | 138,000 | miles |
| Job support | Number of jobs | 1,800 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $353,000 which includes the following costs:
| Wages | $ | 139,000 |
| Cleaning supplies | 26,000 | |
| Cleaning equipment depreciation | 14,000 | |
| Vehicle expenses | 29,000 | |
| Office expenses | 68,000 | |
| President’s compensation | 77,000 | |
| Total cost | $ | 353,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 77 | % | 12 | % | 0 | % | 11 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 66 | % | 0 | % | 0 | % | 34 | % | 100 | % |
| Vehicle expenses | 0 | % | 76 | % | 0 | % | 24 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 56 | % | 44 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 30 | % | 70 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch—a 59-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $47.40 (200 square feet @ $23.70 per hundred square feet). Calculate the customer margin earned on this job.
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.60 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 7,500 hundred square feet Travel to jobs Miles driven 394,000 miles Job support Number of jobs 1,800 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $363,000 which includes the following costs: Wages $ 138,000 Cleaning supplies 28,000 Cleaning equipment depreciation 15,000 Vehicle expenses 40,000 Office expenses 68,000 President’s compensation 74,000 Total cost $ 363,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 77 % 11 % 0 % 12 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 75 % 0 % 0 % 25 % 100 % Vehicle expenses 0 % 84 % 0 % 16 % 100 % Office expenses 0 % 0 % 56 % 44 % 100 % President’s compensation 0 % 0 % 31 % 69 % 100 %
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N ranch—a 53-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N ranch was $188.80 (800 square feet @ $23.60 per hundred square feet). Calculate the customer margin earned on this job.
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.55 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 12,500 hundred square feet Travel to jobs Miles driven 287,500 miles Job support Number of jobs 1,800 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable ________________________________________ The total cost of operating the company for the year is $359,000 which includes the following costs: Wages $ 144,000 Cleaning supplies 28,000 Cleaning equipment depreciation 8,000 Vehicle expenses 39,000 Office expenses 59,000 President’s compensation 81,000 Total cost $ 359,000 ________________________________________ Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 73 % 13 % 0 % 14 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 71 % 0 % 0 % 29 % 100 % Vehicle expenses 0 % 81 % 0 % 19 % 100 % Office expenses 0 % 0 % 63 % 37 % 100 % President’s compensation 0 % 0 % 31 % 69 % 100 % ________________________________________ Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch—a 59-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $47.10 (200 square feet @ $23.55 per hundred square feet). Calculate the customer margin earned on this job.
In: Accounting
Sales on account for the first two months of the current year are budgeted as follows.
| January | $ | 301,000 |
| February | 475,000 | |
All sales are made on terms of 2/10, n/30 (2 percent discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows.
| Collections within the month of sale: | ||
| Within discount period | 60 | % |
| After discount period | 15 | |
| Collections within the month following sale: | ||
| Within discount period | 15 | |
| After discount period | 7 | |
| Returns, allowances, and uncollectibles | 3 | |
| Total | 100 | % |
Compute the estimated cash collections on accounts receivable for the month of February.
In: Accounting
Conduct the hypothesis test and provide the test statistic, critical value, and P-value, and state the conclusion. A person randomly selected 100 checks and recorded the cents portions of those checks. The table below lists those cents portions categorized according to the indicated values. Use a 0.10 significance level to test the claim that the four categories are equally likely. The person expected that many checks for whole dollar amounts would result in a disproportionately high frequency for the first category, but do the results support that expectation?
Cents portion of check: 0-24, 25-49, 50-74, 75-99
Number: 32, 24, 17, 27
In: Statistics and Probability
Analyze transaction and prepare T accounts
blues consulting services organized as a corporation on Mar 18 and involved in the following transactions during it first two weeks of operation:
Mar 18 issued capital stock in exchange for $ 30,000 cash.
Mar 22 borrowed $20,000 from it's bank by issuing a note payable.
Mar 23 paid $100 for a radio advertisement aired on march 24.
Mar 25 provided $1,000 of services to client for cash.
Mar 26 provided $2,000 of services to clients on account.
Mar 31 collected $800 cash from clients for the services provided on march 26.
Required:
a)post each entry to the appropriate T account
In: Accounting